Question

From the following trial balance and adjustment data, complete (1) a worksheet and (2) three financial statements (numbers are intentionally small so you may concentrate on the theory). Prost Company Trial Balance December 31, 201X Dr. Cr Cash 14 Accounts Receivable 4 Prepaid Insurance 5 Plumbing Supplies Plumbing Equipment 7 Accumulated Depreciation, Plumbing Equipment Accounts Payable 1 J. Frost, Capital 12 J. Frost, Withdrawals Plumbing Fees Rent Expense 4 Salaries Expense 5 Totals 45 45 Adjustment Data Insurance Expired, $3. A. B. Plumbing Supplies on hand, $1. C. Depreciation Expense, Plumbing Equipment, $1. D. Salaries owed but not paid to employees, $2 Requirements 27 en

Answer 1

1) Worksheet

			Unadjusted			Adjustment			Adjusted			Income Statement			Balance Sheet
Particulars			Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Cash			$   14.00						$   14.00						$   14.00
A/R			$      4.00						$      4.00						$      4.00
Prepaid Insurance			$      5.00				$      3.00		$      2.00						$      2.00
Plumbing supplies			$      3.00				$      2.00		$      1.00						$      1.00
Plumbing equipment			$      7.00						$      7.00						$      7.00
Accu. Dep.				$      5.00			$      1.00			$      6.00						$      6.00
A/P				$      1.00						$      1.00						$      1.00
Salaries Payable							$      2.00			$      2.00						$      2.00
Capital				$   12.00						$   12.00						$   22.00
Withdrawal			$      3.00						$      3.00						$      3.00
Fees				$   27.00						$   27.00			$   27.00
Rent Expense			$      4.00						$      4.00			$      4.00
Salaries Expense			$      5.00			$      2.00			$      7.00			$      7.00
Insurance Expense						$      3.00			$      3.00			$      3.00
Supplies Expense						$      2.00			$      2.00			$      2.00
Depreciation Expense						$      1.00			$      1.00			$      1.00
Net Income												$   10.00
			$   45.00	$   45.00		$      8.00	$      8.00		$   48.00	$   48.00		$   27.00	$   27.00		$   31.00	$   31.00

2)

	Income Statement
	Fees		$   27.00
Less:	Expenses:
	Rent Expense		$      4.00
	Salaries Expense		$      7.00
	Insurance Expense		$      3.00
	Supplies Expense		$      2.00
	Depreciation Expense		$      1.00
	Net Income		$   10.00

	Owner's Capital
	Beginning Capital		$   12.00
Add:	Net Income		$   10.00
Less:	Withdrawals		$      3.00
	Ending Capital		$   19.00

Balance Sheet
Assets
Cash			$   14.00
A/R			$      4.00
Prepaid Insurance			$      2.00
Plumbing supplies			$      1.00
Plumbing equipment		$      7.00
Accu. Dep.		$    (6.00)	$      1.00
	Total assets		$   22.00
Liabilities and Equity
A/P			$      1.00
Salaries Payable			$      2.00
Capital			$   19.00
Total Liabilities and Equity			$   22.00